When it comes to long leasehold property in Hatton, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years left. Residents in Hatton with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under eighty years left, under the current legislation the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold residencies in Hatton with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Hatton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her two bedroom flat in Hatton, Emily commenced the lease extension process as the 80 year deadline was fast nearing. The transaction was finalised in October 2015. The freeholder’s costs were restricted to less than 550 pounds.
Last June we were contacted by Dr G Young , who purchased a one bedroom flat in Hatton in November 1999. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar homes in Hatton with a long lease were worth £295,000. The average ground rent payable was £45 collected quarterly. The lease elapsed in 2100. Considering the 74 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension matter before the tribunal for a Hatton property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The unexpired term as at the valuation date was 82.93 years.